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Expense Reimbursements
Function
The employee expense reimbursement function is designed to simplify payment of employee expenses by integrating it into the payroll process.
Most agencies prefer to handle expense reimbursements through this process for several reasons.
Things You Should Know
NOTE: The batch will be automatically posted when the payroll check run is saved.
Expense Batch Control
Operating Instructions
Batch #: This is an informational field. The system will automatically number the expense reimbursement batches.
Description: If desired, enter a description for the batch.
Pay Period: The beginning and ending dates of the pay period are to be entered in these fields.
GL Code: Enter the liability account that is used as the expense control account for the credit side of the entry to be posted to.
Posting Period: Select the posting period for the month in which the expense reimbursements should be reflected.
Posted: This is an informational field. It will show False when the expense reimbursement batch is entered and changed to True when the expense journal entry is posted.
Print Options: Check boxes are available to specify if signature lines should be printed and the order the expense reimbursements should be sorted – alpha or code.
Find: This selection enables you to search the expense reimbursement batch by batch number.
Expense Data Entry
Operating Instructions
Employee: Enter the Employee code in this field. Your selection will be restricted to current active staff and will be listed in code order.
Name: If the employee code is not known, click on the combo box arrow and select from the alpha listing of employees.
Description: If desired, enter a description for this reimbursement. Note: Entering the forward slash, (/), in this field will repeat the description from the previous expense reimbursement.
Amount: Enter the total dollar amount of the expense reimbursement.
Element: Enter the Element code for the current line of expense distribution.
GL Code: Enter the GL code for the current line of expense distribution.
Amount: Enter the dollar amount to be expensed on the current line of distribution.
Find: This selection enables searching the expense reimbursement file by employee code.
Print Options: Check boxes are available to specify if signature lines should be printed and the option to include all expense reimbursements
The employee expense reimbursement function is designed to simplify payment of employee expenses by integrating it into the payroll process.
Most agencies prefer to handle expense reimbursements through this process for several reasons.
- Reimbursement of staff expenses can be disruptive to the normal flow of activities in the accounting department and handling this issue in conjunction with payroll puts it on a routine basis. This gives the employees a standard procedure for submitting these claims, as well as a certainty of when they can expect to receive the reimbursement.
- Reimbursing expenses in this manner is an excellent time and money saver. Voucher data entry of reimbursements is replaced by a more efficient process. Processing time is reduced as additional Accounts Payable checks are not necessary.
Things You Should Know
- There are no tax consequences to handling reimbursements in this manner. Payroll gross to net amounts are calculated normally. Reimbursements are subsequently added to the employee’s net pay and clearly identified on payroll check stubs and all payroll records.
- Any form of employee expense reimbursements may be handled through this process, i.e., travel advances, travel reimbursements, supplies, postage, etc.
- Part of the posting process of employee expense reimbursements is posting the expense reimbursement batch to the General Ledger as a TR batch. The description will reference the pay period ending date.
NOTE: The batch will be automatically posted when the payroll check run is saved.
- Voiding a payroll check that includes an expense reimbursement will also require a GJ to credit expense and debit the expense control account.
- These reimbursements can be entered into the system at any time during the month and posted to the General Ledger prior to the payroll processing.
- Once expense reimbursements have been processed through payroll, the batch can be unposted to edit the element and GL codes only. Then the batch must be re-posted for the changes to be properly recorded.
Expense Batch Control
Operating Instructions
Batch #: This is an informational field. The system will automatically number the expense reimbursement batches.
Description: If desired, enter a description for the batch.
Pay Period: The beginning and ending dates of the pay period are to be entered in these fields.
GL Code: Enter the liability account that is used as the expense control account for the credit side of the entry to be posted to.
Posting Period: Select the posting period for the month in which the expense reimbursements should be reflected.
Posted: This is an informational field. It will show False when the expense reimbursement batch is entered and changed to True when the expense journal entry is posted.
Print Options: Check boxes are available to specify if signature lines should be printed and the order the expense reimbursements should be sorted – alpha or code.
Find: This selection enables you to search the expense reimbursement batch by batch number.
Expense Data Entry
Operating Instructions
Employee: Enter the Employee code in this field. Your selection will be restricted to current active staff and will be listed in code order.
Name: If the employee code is not known, click on the combo box arrow and select from the alpha listing of employees.
Description: If desired, enter a description for this reimbursement. Note: Entering the forward slash, (/), in this field will repeat the description from the previous expense reimbursement.
Amount: Enter the total dollar amount of the expense reimbursement.
Element: Enter the Element code for the current line of expense distribution.
GL Code: Enter the GL code for the current line of expense distribution.
Amount: Enter the dollar amount to be expensed on the current line of distribution.
Find: This selection enables searching the expense reimbursement file by employee code.
Print Options: Check boxes are available to specify if signature lines should be printed and the option to include all expense reimbursements
